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FASB proposes targeted improvements to the accounting for collaborative arrangements

  • FASB document Image

Apr 26, 2018

The FASB has issued a proposed Accounting Standards Update (ASU), “Collaborative Arrangements (Topic 808): Targeted Improvements.”

Enhancements made by the pro­posed ASU would include the following:

  • The addition of unit-of-account guidance to ASC 808 to “align with the guidance in [ASC] 606 (that is, a distinct good or service) limited to when an entity is assessing the scope of [ASC] 606.”
  • Clarification that “certain transactions between collaborative participants should be accounted for as revenue under [ASC] 606 when the collaborative participant is a customer in the context of the unit of account.”
  • Clarification that, “in a transaction that is not directly related to sales to third parties, presenting the transaction as revenue would be precluded if the collaborative participant counterparty is not a customer.”

Com­ments on the pro­posed ASU are due by June 11, 2018. For more in­for­ma­tion, see Deloitte's Heads Up newsletter as well as the pro­posed ASU on the FASB’s Web site.

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